Russia Sistema sees 2009 profit if rouble firm

ST PETERSBURG, Russia, June 4 (Reuters) - Russia's Sistema (SSAq.L: Quote, Profile, Research) could end the year in the green despite a first quarter loss as long as the rouble holds firm, Leonid Melamed, the president of the services conglomerate said on Thursday.

The depreciation of the rouble in the second half of 2008 and early 2009 dented Sistema's dollar-denominated results. On Wednesday the company unveiled a net loss for the first quarter of this year, warning there may be worse to come [nL3476634]. But Melamed, interviewed by Reuters financial television on the sidelines of the St Petersburg Economic Forum, sounded more upbeat.

"We definitely see (full year) operative profits in the mobile fixed sector," he said, speaking in English. "On the net side it is to a large extent dependent on the rate of the Russian rouble... but if the trend that we saw over the last two months (rouble appreciation)... goes ahead, the companies are doomed to show a green bottom line."

He added that in terms of further expansion in the telecoms sector, India presented the most attractive opportunities.

Asked about the possibility of a partnership between Sistema's IT subsidiary Sitronics (SITRIq.L: Quote, Profile, Research) and troubled German chip maker Infineon (IFXGn.DE: Quote, Profile, Research), Melamed replied:

"There are some discussions going on government level in Russia about the potential attractiveness of some international producers in microelectronics as a potential part in the realisation of Russia's plan to develop its own microelectronics.

"Sitronics is the predominant player on the internal market and we definitely consider that Sitronics will be able to play an important part in the realisation of those plans of the Russian government," he added.

(Writing by Toni Vorobyova; Editing by Hans Peters)

((antonina.vorobyova@reuters.com; Tel: +7495 7751242, Reuters Messaging: antonina.vorobyova.reuters.com@reuters.net)) Keywords: SISTEMA/

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